Paying monthly for Photoshop may be good for you

Here’s hoping you’re not fully and deeply committed to paying for software once, because that business model is clearly headed out the door. Its demise may even be in your best interest.

On Monday, Adobe announced that the current version of its Creative Suite package would be the last. The company will update Creative Suite 6 for compatibility with the next releases of Microsoft’s Windows and Apple’s OS X, but that will be it.

Instead, Adobe will focus its development efforts on Creative Cloud, versions of its content-creation software that require a subscription. If you want access to the latest versions of Photoshop, Illustrator, Dreamweaver, InDesign, Premiere Pro and other popular titles, you’ll soon be paying by the month.

Of course, Adobe’s not the first to do this. Microsoft recently began moving to a subscription model by pushing Office 365, a services-based version of its productivity suite, at consumers. In Microsoft’s case, you can still buy a copy of Office that doesn’t require a subscription, but the usage terms clearly favor the subscription version. For example, the single-copy license only lets you install Office 2013 on one computer, while Office 365 allows you to install it on up to 5 PCs for $99 a year.

The knee-jerk reaction to subscription-based software is going to be one of resentment. At first blush, paying by the month or the year for the right to use a program seems like a ripoff. But, depending on the kind of user you are, it may be a bargain.

If you’re the type who stays up to date with programs, updating when new releases are out, subscriptions can save you money. For example, Adobe has tended to do major updates for its software about every two years. If you want to buy a standalone copy of Photoshop CS6, the list price is $700 (though there are plenty of ways to get discounts).

If you use the full Creative Suite, the savings are similar – at least, if you are the kind of user who upgrades regularly. If you have a version of Creative Suite 3 or later, you’ll pay $29.95 for the full suite of Creative Cloud apps for the first year, or about $360. That goes up to $49.99 if you continue in the second year, which is about $600. The full version of Creative Suite 6 lists for $1,300, though there are other packages that are priced as high as $2,600.

The savings vanish, though, if you are the kind of user who holds off on upgrading for years. If you wait three, four or more years before you’d normally upgrade, you’ll end up spending more than you would if you bought the software outright.

Moving to a subscription-based business model makes sense for big software companies, because it makes their revenue more reliable. When they release software every two years, developers ride crests and valleys of income streams. With subscriptions, the money flows in at a steady level.

But it may or may not make sense for users. I have a feeling that Creative Suite 6 is going to be the last version of Adobe’s programs that a lot of people and companies buy – it could turn out to be Adobe’s Windows XP. There will be resistance, but in the long run, this is where the software business is headed, and resistance is futile.

Update: An Adobe spokesperson points out that there is a plan that does not require an annual contract – but it’s a lot more expensive. You can use the full suite for $74.99 a month, or a single program for $29.99, on a month-by-month basis.

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